When you rely on rent paid by your tenants to cover your own bills, it's important to make sure that the properties you let remain in good working order, but sometimes things happen that are outside of your control. If your property becomes damaged by a storm, for example, your tenants could be forced to move themselves, or their business, elsewhere.
As a landlord, you may not be contractually obliged to provide alternative accommodation if your property becomes uninhabitable. However, if your tenants move out, you would lose out on rental income, which could leave you out of pocket.
Fortunately, with loss of rental income cover you can claim back the money lost if your tenants are forced to leave the property due to an insured event. Loss of rental income is an optional cover type that you can add to your Direct Line for Business landlord insurance policy for an extra premium.
You can take up loss of rental income when you start your policy with us or, if you already have landlord insurance with Direct Line for Business, you can add loss of rental income at any point during the policy term.
Unfortunately, there are other reasons why a tenant might stop paying rent. If a tenant is struggling financially, for example if they suddenly lose their job, they may no longer have the funds available to make their rent payments. If this happens, you potentially face months of unpaid rent and even a legal dispute.
Fortunately, you can cover yourself for this risk by adding rent guarantee cover to your residential landlord insurance policy. We'll repay any unpaid rent while your tenants are still in the property, covering up to £250,000 per claim. We will also cover the costs of repossessing the property if your tenants refuse to leave.
Rent guarantee cover is an extension of our legal expenses add-on. You can learn more about rent guarantee and how it can help safeguard your income here.
With lots of different cover options available, you might not be sure which cover types to include in your insurance policy. We've outlined the differences between loss of rental income and rent guarantee, so that you can make an informed decision.
From buildings and contents cover to access to our legal documents service, find out what's included in our landlord insurance here.
Commercial landlord? We also offer specialist insurance for landlords who rent out properties for commercial use or have a mixed portfolio of commercial and residential buildings. Learn more about this type of insurance here.